As of 06/25/2019
  Industrials: 26,548 -179.32 -0.7%  
  Transports: 10,110 -87.48 -0.9%  
  Utilities: 821 -5.99 -0.7%  
  Nasdaq: 7,885 -120.98 -1.5%  
  S&P 500: 2,917 -27.97 -0.9%  
YTD
 +13.8%  
 +10.2%  
 +15.2%  
 +18.8%  
 +16.4%  
  Tom's Targets    Overview: 06/13/2019  
  Up arrow26,800 or 25,400 by 07/01/2019
  Up arrow10,700 or 9,900 by 07/01/2019
  Up arrow830 or 780 by 07/01/2019
  Up arrow8,150 or 7,575 by 07/01/2019
  Up arrow3,000 or 2,875 by 07/01/2019
As of 06/25/2019
  Industrials: 26,548 -179.32 -0.7%  
  Transports: 10,110 -87.48 -0.9%  
  Utilities: 821 -5.99 -0.7%  
  Nasdaq: 7,885 -120.98 -1.5%  
  S&P 500: 2,917 -27.97 -0.9%  
YTD
 +13.8%  
 +10.2%  
 +15.2%  
 +18.8%  
 +16.4%  
  Tom's Targets    Overview: 06/13/2019  
  Up arrow26,800 or 25,400 by 07/01/2019
  Up arrow10,700 or 9,900 by 07/01/2019
  Up arrow830 or 780 by 07/01/2019
  Up arrow8,150 or 7,575 by 07/01/2019
  Up arrow3,000 or 2,875 by 07/01/2019

Bulkowski's Triple Bottoms

 

Statistics updated 5/3/2019.

Triple Bottoms: Summary

Triple bottoms are somewhat rare chart patterns. That makes sense because three bottoms seldom line up like soldiers at attention. They have a reasonable break even failure rate and decent average rise in a bull market, giving them a solid performance rank.

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For more information on this pattern, read Encyclopedia of Chart PatternsEncyclopedia of Chart Patterns book. pictured on the left.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

 

Score your pattern
for performance

Triple bottom chart pattern

Triple Bottom Chart Pattern

Triple Bottoms: Important Bull Market Results

Overall performance rank (1 is best): Not ranked
Break even failure rate: 14%
Average rise: 44%
Throwback rate: 66%
Percentage meeting price target: 72%

The above numbers are based 1,643 perfect trades. See the glossary for definitions.

Triple Bottoms: Identification Guidelines

CharacteristicDiscussion
Price trendDownward leading to the pattern but should not drop below the first bottom.
ShapeThree distinct valleys that look similar.
Bottom priceThe price variation between bottoms is small such that it appears the three valleys bottom near the same price. Allow variations.
ConfirmationThe pattern confirms as a true triple bottom once price closes above the highest peak between the valleys.
VolumeUsually higher on the first bottom than on the last, trending downward 66% of the time, but it may peak beneath each valley.

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Triple Bottoms: Trading Tips

Trading TacticExplanation Triple bottom measure rule
The Measure Rule

 

Triple bottom trendline play

Trendline

 

Triple bottom flat base

Flat Base

 

Triple bottom shelf

Shelf

Measure ruleCompute the height from the highest peak (point A in The Measure Rule figure to the right) to the lowest valley in the pattern (B) then multiply it by the above 'percentage meeting price target.' Add the result to the breakout price (the highest peak in the pattern, A) to get the target, C.
Big WLook for a triple bottom with a tall left side, one with a steep decline and few or no price consolidations along the way. Expect price to return to near where the downtrend began.
ConfirmationWait for confirmation – price to close above the peak between the valleys (point A in the Measure Rule figure to the upper right). Triples are rare, so price often continues down without confirming the triple bottom.
RiseIf the rise between the first two bottoms is higher than the rise between bottoms 2 and 3, draw a down-sloping trendline connecting the tops. When price crosses this trendline, buy. The Trendline figure to the right shows an example.
Flat baseExpect a large rise if the triple bottom appears after a long, flat base. Use the weekly scale to find the flat base – the triple bottom will look like a pothole in a road. The Flat Base figure to the right shows an example.
MMUsTriple bottoms can appear as the corrective phase of a measured move up. The breakout move may be less than you expect.
Up trendAvoid triple bottoms that appear after an extensive up trend. The breakout is apt to result in a disappointing move.
DeclinesTriple bottoms with short- to intermediate-term (up to 6 months) decline leading to the pattern perform best post breakout.
PeakIf a triple bottom appears after a peak, the post breakout rise is apt to stall at the peak.
ShelfA third bottom that appears flat tends to support prices. When price rises above the top of this shelf, buy. The Shelf figure to the right shows an example.
Last valleyIf the last valley bottom is above the second valley bottom, then expect better performance. The Shelf figure shows an example of this when bottom B is above bottom A.
ThrowbacksThrowbacks hurt post breakout performance.

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Triple Bottoms: Example

Triple bottom chart pattern example

The above figure shows an example of a triple bottom chart pattern. The three bottoms (1 , 2 and 3) are at nearly the same price. Although bottom 3 appears to be well above the other two, the price scale suggests they are close to each other. The green confirmation line shows where the three bottom chart pattern becomes a true triple bottom.

-- Thomas Bulkowski

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See Also

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.
Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns Bumper's Story Head's Law
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Some pattern names are registered trademarks of their respective owners.
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